Avivagen Inc. (VIV:TSX.V; CHEXF:OTCMKTS) announced in a news release that the Malaysian authorities approved the use of the company's OxC-beta™ Livestock in feed for poultry broilers and swine.
As a result, the product now has approval in eight major markets around the world—along with Malaysia, the U.S., Mexico, New Zealand, Taiwan, Thailand, Australia and the Philippines.
In Malaysia, the type of feed with the greatest demand is for poultry broilers and layers. For instance, last year an estimated 4.8 million metric tons of feed were produced there. This trend is being driven by the increasing popularity of chicken-based fast food restaurants, such as KFC, Nando's, The Chicken Rice Shop, Kenny Rogers Roasters and Ayamas.
In addition, the Malaysian government's goal is to produce antibiotic-free chicken in 2020. "The approval of OxC-beta for livestock ideally positions Avivagen to capitalize on an expected increased market for safe and effective antibiotic alternatives that will be needed to meet production demands under this countrywide mandate," the release highlighted.
"We are very excited to secure approval for the use of OxC-beta Livestock in the fast-growing Malaysian market, where the planned move to antibiotic-free chicken production in 2020 presents us with an immediate opportunity for growth," said Kym Anthony, CEO of Avivagen. "2019 has seen Avivagen secure key regulatory approvals in new markets and sign new distribution deals for OxC-Beta Livestock, laying important groundwork that we are confident sets the stage for positive momentum and sales growth in 2020 and beyond."
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